National Insurance Employer Secondary Contributions

From the 6th April 2019 to 5th April 2020

All employers make a contribution to their employee’s National Insurance when certain PAYE limits are reached.

The employer contribution is referred to as a secondary contribution, it is an expense new employers often forget to take into account when employing staff.

Employers make a contribution on gross employee earnings over the Secondary Threshold (ST) £166 per week

The percentage of the contribution depends on the amount of the employee’s gross earnings, their age and the national insurance letter allocated to the employee by HMRC.

On the 6th April 2016 HMRC  introduced the letter H to calculate employer national insurance secondary contributions for Apprentices under 25

Using the letter H for eligible apprentices, the employer will not have to make a contribution to national insurance until the Apprentice Upper Secondary Level (AUST) is reached, gross pay £962 per week.

Nic’s LetterACHJM
 %% %% %
Earnings at or above LEL up to and including the ST00000
Earnings above ST up to and including the UEL/UST/AUST13.8013.80013.800
Balance of earnings above the UEL/UST/AUST13.8013.8013.8013.8013.80
Key: Weekly

LEL (lower earnings threshold) £118

ST (secondary threshold) £166

UST (upper secondary threshold under 21’s) £962 and above

AUST (apprentice upper secondary threshold under 25’s) £962 and above

UEL (upper earnings limit) £962 and above

National Insurance contributions should NOT be made on earnings below the lower earnings limit

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